Unit 3 Equity Securities Flashcards
1
Q
Preferred stock prices move _____ to interest rates.
A
inversely
2
Q
Cumulative Preferred Stock
A
Pays dividends in arrears (missed payments), before any other common stock holders get dividend
3
Q
Par value of preferred stock
A
$100
4
Q
Determining to convert convertible securities
A
- find conversion ratio ($100par/ CP)
- Multiply by stock price
- if $ > convertible security, convert
5
Q
Higher dividend than stated rate is a
A
Participating preferred stock
6
Q
Class Q common stock
A
associated with an issuer’s dividend reinvestment plan (DRIP)
7
Q
A rights offering will _______ a company’s EPS
A
decrease